CONCEPCION AINZA, substituted by her legal heirs, NATIVIDAD TULIAO ET AL.

vs.
SPOUSES PADUA

G.R. No. 165420

June 30, 2005

FACTS:

Sometime in April 1987, Concepcion Ainza bought from her daughter Eugenia,
108.49 sq. m. lot owned by Eugenia and her husband Antonio Padua in the amount
of One Hundred Thousand Pesos (P100,000.00).

No Deed of Absolute Sale was executed to evidence the transaction, but cash
payment was received by Eugenia, and ownership was transferred to Concepcion
through physical delivery to her attorney-in-fact and daughter, Natividad Tuliao.

Later on, Antonio claimed ownership of the land. He filed an ejectment suit.
Concepcion, represented by Natividad, also filed a civil case for partition of real
property.

The Trial Court ruled in favor of Concepcion. Further, the trial court upheld the sale
between Eugenia and Concepcion.

On appeal, the Court of Appeals reversed the decision of the trial court, and
declared the sale null and void in view of Article 124 of the Family Code.

ISSUE:

Whether or not there was a valid contract of sale between Eugenia and Concepcion.

HELD:

The Supreme Court ruled that there was a perfected contract of sale between Eugenia
and Concepcion. The contract of sale was consummated when both parties fully
complied with their respective obligations.

Article 173 of the Civil Code provides that contracts entered by one spouse without the
consent of the other spouse when such consent is required, are annullable at the
instance of the spouse who has not given consent, during the marriage and within ten
years from the transaction questioned.

The contract of sale between Eugenia and Concepcion being an oral contract, the action
to annul the same must be commenced within six years from the time the right of action
accrued. Eugenia sold the property in April 1987 hence Antonio should have asked the
courts to annul the sale on or before April 1993.

No action was commenced by Antonio to annul the sale, hence his right to seek for its
annulment was extinguished by prescription. He is now barred from questioning the
validity of the sale between his wife and Concepcion.